12 true statement, rumor or suggestion derogatory to the financial 13 condition, or with respect to the earnings or management of the 14 business of any banking corporation, or resorts to any fraudulent 15 means with intent to depress in value the stocks, bonds or securi16 ties of any banking corporation, shall be guilty of a misdemeanor, 17 and, upon conviction shall be fined not to exceed three hundred 18 dollars and the cost of the prosecution, or to imprisonment in the 19 county jail not more than sixty days, or to both fine and imprison20 ment.

CHAPTER 98

(Senate Substitute for House Bill No. 257.)

(By the Committee on the Judiciary.)

AN ACT to empower the judges of courts to appoint shorthand reporters, defining the duties of such reporters, the uses to which the records made by them may be put, providing the manner of their payment, and repealing all acts or parts of acts inconsistent herewith.

[Passed April 27, 1921. In effect from passage. Became a law without the approval of the Governor.]

Be it enacted by the Legislature of West Virginia:

Section 1. The circuit courts of the several judicial circuits 2 in this state, or the judges thereof in vacation, or the judges of 3 any intermediate, criminal or common pleas court, are hereby 4 empowered and authorized to employ and appoint competent 5 shorthand reporters to take and report, under such regulations 6 as said judges, or any of them, may prescribe, the proceedings 7 had and the testimony given in any case, either civil or criminal, 8 or in any other proceeding had in such court, including the taking 9 of testimony before the grand jury of such court for the use 10 of the prosecuting attorney of such court, and in proceedings 11 before the judge of such court in vacation, and otherwise to 12 aid the judge in the performance of his official duties.

13

Said reporter, when appointed, shall be qualified under oath, 14 and shall be authorized to attend the sessions of the grand jury, 15 but shall retire from said session when directed by the foreman, 16 or a majority of the grand jury, or when ordered to do so by 17 the court, and when the grand jury desires to consult or vote 18 upon any matters before them.

19

Said appointment and employment of such reporter may be 20 made by the judge of such court by an order entered of record, 21 and the reporter so appointed shall be designated as the "official 22 reporter" of the court for which he shall be appointed.

Sec. 2. It shall be the duty of such reporter to take full 2 shorthand notes of the testimony and proceedings in which his 3 services may be required, and such notes shall be deemed and 4 held to be official and the best authority in any matter in dispute, 5 and a transcript of the same, written out in longhand or type6 writing, made as herein provided, shall be used by the parties. 7 to the cause in any further proceeding therein wherein the use 8 of the same may be required.

9 It shall be the duty of the said reporter to furnish a copy of 10 his notes, written out in longhand or typewriting, of the tes11 timony and proceedings, for the use and upon the request of 12 the judge, without extra charge in criminal cases, the copy to be 13 filed in the clerk's office.

Sec. 3. Said reporter shall furnish, upon request, to any 2 party to a case, a copy of the testimony or other proceedings, 3 written out in longhand or typewriting, and shall certify the 4 same as being correct, and shall be paid therefor at the rate of 5 twenty cents for each one hundred words so transcribed and 6 certified; (and for each carbon copy of such transcript, ordered. 7 at the same time, he shall be paid six cents for each hundred 8 words so furnished.)

9 A copy of such testimony or proceedings, when certified by the 10 official reporter and by the judge of the court, shall be authentic 11 for all purposes, and may be used in making up the record on 12 appeal; and in all cases of appeal, such reporter shall also make 13 a carbon copy of the testimony and proceedings required, which 14 carbon copy shall be filed in the office of the clerk of the court 15 in which the trial or proceedings was had, to be used, if neces16 sary, in making up the record or appeal; and the said clerk shall 17 not be entitled to any fee for that part of the record in any

18 case wherein the testimony or proceedings so transcribed and 19 certified by said official reporter shall be used in said record. 20 And if upon appeal or writ of error the judgment or order 21 entered in the cause be reversed, the cost of such transcript shall 22 be taxed as other costs; and if said transcript be requested or 23 required for the purpose of demurring to the evidence, the cost 24 thereof shall be taxed in favor of the party prevailing on the 25 demurrer.

Sec. 4. Such official reporter shall receive such salary or other 2 compensation for his services and expenses as the judge may allow. 3 Such compensation and expenses in civil and misdemeanor cases 4 shall be certified by the court to the county court of the county in 5 which such services are rendered, and the same shall be paid 6 out of the county treasury. Such compensation and services in 7 felony cases shall be certified to the auditor of the state, and 8 paid by him out of the state treasury.

9 The clerk of the court in which such reporter is employed, 10 shall tax as a part of the costs, a reporter's fee of not less than 11 five dollars to be fixed by the court, for each case in which such 12 reporter was engaged; and when received by the clerk, such 13 costs shall be paid by him to the sheriff, and by the sheriff ac14 counted for and paid, in civil and misdemeanor cases, into the 15 county treasury, and in felony cases into the state treasury. 16 Provided, that if the salary be allowed in lieu of all other com17 pensation, it shall be paid quarterly, and, if the circuit consists 18 of more than one county, such salary shall be paid by the counties 19 composing the circuit in such proportion as the judge may fix, 20 by the several county courts of the counties constituting the 21 judicial circuit, out of their respective county treasuries. But 22 all fees for services rendered by the salaried official reporter in 23 the discharge of his duties as such, may be collected, and shall, 24 when collected by the sheriff or said official reporter, be paid into 25 the treasury of the county in which the services were rendered, 26 except that all fees paid by the state shall be refunded to the 27 state when collected, and it shall be the duty of such reporter to 28 make out, sign and deliver to the sheriff a fee bill in every case, 29 civil or criminal, giving the style thereof and the amount due, 30 and from whom, which amount may be collected or levied for by 31 the sheriff, and such fee bill shall have the force and effect of an 32 execution when levied. Said official reporter shall collect the

33 fees mentioned in section three of this act for any testimony or 34 record furnished by him to any party, and pay the same over 35 to the sheriff of the county in which the services were performed, 36 to be by him accounted for as herein provided.

Sec. 5. So far as any act or part of any act of the legislature 2 is inconsistent with this act or any of its provisions, they shall 3 not be applicable to the judge of the circuit court of the several 4 judicial circuits nor said official reporters, and to the extent 5 of such inconsistency, they are hereby repealed.

CHAPTER 99

(House Bill No. 472-Mr. Stathers.)

AN ACT to amend and re-enact sections one, eleven, twelve, thirteen and eighteen of chapter fifty-five-b of Barnes' code of one thousand nine hundred and sixteen; all relating to speculative securities.

[Passed April 27, 1921. In effect July 1, 1921. May 4, 1921.]

Approved by the Governor

of auditor over persons operating under this act; duty of auditor, upon complaint act violated.

Expenses and fees hereunder, how collected and disposed of, re-appropriation of same to carry act into effect appointment of additional investigators by auditor; expenses of auditors and investigators, how paid; appropriation of expenses and fees heretofore collected.

Be it enacted by the Legislature of West Virginia:

That sections one, eleven, twelve, thirteen and eighteen of chapter fifty-five-b of Barnes' code of one thousand nine hundred and sixteen be amended and re-enacted so as to read as follows:

Section 1. That no person or persons mentioned in section 2 six of this act, shall, as principal or agent, promote by advertise3 ment, circular, prospectus, or any other form of public or general 4 offering, inducement or persuasion, the issuance, transfer, dis5 tribution, sale or negotiation of any speculative securities, as 6 hereinafter defined in section two of this act, unless prior thereto he, or they, shall have filed 8 auditor of this state, duly

with the

verified by

his,

or their,

9 oath or affirmation and accompanied by a filing fee 10 of twenty-five dollars, a statement containing the fol11 lowing; provided, however, that this section shall not 12 apply to a bona fide offer directly made to banks,

17 as

13 bankers, brokers or trust companies who deal in such 14 securities: (a) a copy of the securities SO to be 15 promoted. (b) A copy of the charter, or article of 16 association, and by-laws, and such other information may be necessary to establish the character of 18 the promotion, and validity and value of the se19 curities, not otherwise referred to in this section. 20 (c) A statement in substantial detail of the assets 21 and liabilities of the person or company issuing such 22 securities and of any company or person guarantee23 ing the same, including specifically the total amount 24 of such securities and of any securities prior there25 to in interest or lien. (d) If such securities are 26 secured by mortgage or other lien, a copy of such 27 mortgage or of the instrument creating such lien, 28 and a competent appraisal or valuation of the property cov29 ered thereby with a specific statement of all prior liens thereon, 30 if any. (e) A full statement of facts showing the gross and net 31 earnings, actual or estimated, of any person or company issuing 32 or guaranteeing such securities, or of any property covered by any 33 such mortgage or lien. (f) All knowledge or information in the 34 possession of such promoter, relative to the character or value 35 of such securities, or of the property or earning power of the per36 son or company issuing or guaranteeing the same, including a 37 statement that such promoter has fully investigated the same 38 and believes the facts as stated to be reliable and true, with such 39 exceptions, if any, as may be stated. (g) A copy of any prospectus 40 or advertising matter which is to be used in connection with such 41 promotion. Such prospectus shall contain a clear and concise 42 statement of the amount of money estimated as necessary to carry 43 out the objects of the promotion; the price at which it is intended. 44 to sell securities; the amount of promotion expense, commissions 45 and other overhead expenses contemplated, and the net amount 46 to be derived by the company from the sale of each share of stock, 47 bond, note, contract or other security, and no prospectus or other 48 advertising matter shall be used unless the same has been filed